Luxury Housing Is Alive

While the overall housing market in Arizona has normalized with moderating unit sales and flattening prices, one bright spot is luxury housing (defined as homes priced $800,000 and above).

Tucson

Luxury Closed Sales

Luxury Under Contract

Closed Sales Under $800,000

2014

115

234

10,428

2013

110

117

11,495

% Change

+4.5%

+14.5%

-10.2%

What we are seeing is the luxury segment of the Tucson housing market outperforming non-luxury. In fact, luxury sales in Tucson are higher in 2014 as compared to 2013.

Although in the Phoenix market the number of luxury closed sales is slightly lower than 2013, luxury homes sales still outpace the non-luxury market considerably in 2014.

Phoenix

Luxury Closed Sales

Luxury Under Contract

Closed Sales Under $800,000

2014

1,358

1,488

57,608

2013

1,388

1,537

66,571

% Change

-2%

-3.2%

-13.5%

This is encouraging news for both the luxury buyer and seller. When the housing market bottomed in 2011 and rebounded in 2012 and 2013, the luxury segment did not see the same level of growth as lower price points. Now, it appears luxury buyers are out in greater numbers and luxury sellers have started to figure out the pricing strategies needed to attract today’s savvy, affluent buyers.

Properties under contract and home sales data is based on information obtained from the TARMLS and ARMLS for all residential properties priced $800,000 and above. All data obtained 10/27/2014 is believed to be reliable, but not guaranteed.